Cavy Company estimates that total factory overhead costs for the following year will be $1,190,000. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 34,000 hours. The machine hours for the month of April for all of the jobs were 1,780. If the actual factory overhead for April totaled $63,546. Determine the over- or underapplied amount for the month. Enter the amount as a positive number.
Cavy Company estimates that total factory overhead costs for the following year will be $1,190,000. The company has decided that the basis for applying factory overhead should be machine hours, which are estimated to be 34,000 hours. The machine hours for the month of April for all of the jobs were 1,780. If the actual factory overhead for April totaled $63,546. Determine the over- or underapplied amount for the month. Enter the amount as a positive number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cavy Company estimates that total factory overhead costs for the following year will be $1,190,000. The
company has decided that the basis for applying factory overhead should be machine hours, which are
estimated to be 34,000 hours. The machine hours for the month of April for all of the jobs were 1,780. If
the actual factory overhead for April totaled $63,546.
Determine the over- or underapplied amount for the month. Enter the amount as a positive number.
Transcribed Image Text:Cavy Company completed 7,740 units during the year at a cost of $503,100. The beginning finished
$102,000.
goods inventory was 1,700 units valued
Assuming a FIFO cost flow, determine the cost of goods sold for 6,990 units.
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